1. Different definitions: irr ??is the internal rate of return. The internal rate of return refers to the level of income that an investor expects to achieve. It is the rate of return when the total inflow and outflow of funds are equal. The annualized rate of return is the current rate of return.

The theoretical rate of return obtained after the rate of return is calculated; 2. Different functions: the internal rate of return can show the risk resistance of the project, while the annualized rate of return can only show the theoretical income of the enterprise or commodity; 3. Different calculation methods

: The internal rate of return has different calculation methods under different circumstances, and the annualized rate of return does not need to be calculated on a case-by-case basis.

Introduction to internal rate of return The English name of internal rate of return is Internal Rate of Return, so it can be abbreviated as IRR.

The higher the internal rate of return, the better the project is.

Investors can use the internal rate of return indicator to calculate the income performance of funds, stocks and other investments.

If the internal rate of return calculation results in 20%, it means that the maximum risk that the project can bear is 20%, and the risk in the project can be expressed as the risk of inflation.